04.03.2009 – 11:27
Strong demand by US investors for KfW's first 5-year USD Global Bond of 2009
KfW has issued its third USD Global Bond of 2009. With its USD III/2009 the promotional bank has issued a volume of USD 4 billion. The issue with a settlement on 10 March 2009 matures on 10 March 2014. With a coupon of 3.50% p.a. and a reoffer price of 99.973% it yields 3.506% s.a. This corresponds to a yield pick-up of 162.8 basis points over the US Treasury maturing in February 2014. KfW USD III/2009 will have an AAA/Aaa/AAA rating from Fitch Ratings, Moody's and Standard & Poor's. Lead managers of the transaction are Credit Suisse, JPMorgan and Morgan Stanley. Co-Lead Managers are Barclays Capital, BNP Paribas, Citi, Goldman Sachs, HSBC, Nomura, RBC CM, RBS and Toronto Dominion.
"In recent weeks it has been very difficult to place bonds with long maturities in the US capital market, so having an order book of nearly 5 billion in the current market environment is a very pleasing result. It clearly demonstrates the unwavering trust international investors place in KfW", said Dr Frank Czichowski, KfW's treasurer. "KfW's issues in the US capital market are an important component of our funding strategy because converting the issue proceeds into euros currently enables us to achieve relatively favourable funding terms which ultimately benefit our promotional business."
The yield pickup over comparable US papers and KfW's first-class credit standing have ensured strong demand for the bond. Given the great interest on the part of US investors in particular, the order book grew steadily to just under USD 4 billion by Monday evening. The book was closed on Tuesday afternoon with a volume of USD 4.9 billion. The more than 120 individual orders illustrate the high degree of diversification of this issue. The share of US investors is over 50% whereas they used to be an average of 20% in earlier transactions. Also worth noting is the relatively high proportion of investment funds (48%) and central banks (30%).
The total breakdown of the order book by sectors is as follows:
Breakdown by investor type: Funds: 48 % Central Banks: 30 % Banks: 20 % Corporates: 1 % Others: 1 %
Geographical Breakdown: Americas: 62 % Asia: 18 % Europe: 18 % Middle East: 2 %
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. KfW has registered the securities that are the subject of this press release for sale in the United States. The offering of the securities in the United States will be made by means of a prospectus that may be obtained from KfW and will contain detailed information about KfW and its management, financial statements and information about the Federal Republic of Germany.
Term Sheet KfW USD IIl/2009 USD 4 bn - 3.50% - 2009/2014
Issuer: KfW (Kreditanstalt für Wiederaufbau) Guarantor: Federal Republic of Germany Rating: AAA (Fitch Ratings) / Aaa (Moody's) / AAA (Standard & Poor's) Size: USD 4.000.000.000 Maturity Date: 10 March 2009 - 10 March 2014 Coupon: 3.50% p.a., semi-annual coupon Payment Dates: 10 March and 10 September Re-offer Price: 99.973% Yield: 3.506% semi-annually Format: Global Stock Market Listing: Luxembourg
Lead Manager (3): Credit Suisse JPMorgan Morgan Stanley
Co-Lead Manager (9): Barclays Capital BNP Paribas Citi Goldman Sachs HSBC Nomura RBC CM RBS Toronto Dominion
For further information please contact:
Tel.: +49 (0) 69 7431-2098
KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Tel. 069 7431-4400, Fax: 069 7431-3266,
E-Mail: email@example.com, Internet: www.kfw.de
Original content of: KfW, transmitted by news aktuell